Home sales were down 29.2% year over year in the metro Atlanta area, per RE/MAX’s February report.
Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can’t afford them.
What’s happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.
By the numbers: By and large, more metro Atlanta homes are on the market — and are sitting there for nearly twice as long.
- The number of properties on the market increased by 88%, from 7,370 to 13,841, compared to February 2022.
- Homes are sitting on the market for an average of 50 days, up from 26 in February 2022.
- They’re also selling for more. The median sold price is $364,000, up 2% from $357,000.
Zoom out: Because there’s less competition nationally right now, buyers don’t have to front as much cash as they did a year ago, Axios’ Emily Peck reports.
Between the lines: Buyers who can afford these mortgage rates have more power.
- They have more options than a year ago, they can take their time searching and they can make offers that aren’t wildly above list price.
Yes, but: These rates make buying unaffordable for many.
What they’re saying: Competition is still fierce, Sherry Fortson Bailey of Keller Williams Intown Atlanta told Axios. With higher interest rates, people don’t want to pay exorbitant amounts over asking prices,
- “[A seller] can’t just put a perceived value on it and hope that someone pays an inflated value,” she said.
Despite stats showing an ample number of properties were available in February, tell that to buyers looking in select neighborhoods right now, she said.
- “There just isn’t anything out there. If it is good, it’s gone.”
What’s next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.
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